Hedging Inflation Rates

Inflation fear dominates the market. The sign of expected inflation is growing now and investors are dumping the long-term government bonds so that the yield of long-term government bond is rising. There are several ways to hedge the inflation rate: 1. Invest on the Treasury Inflation-protected Securities (TIPS) 2. Invest the cyclical stocks 3. Invest on Gold. the following chart shows the relationship between 10-year Treasury rate and Gold price.